Top flight hit as traders take fright at prospect of rising US interest rates

The FTSE 100 ended the week in the red as concerns over the prospect of rising US interest rates and the stand-off between Rome and Brussels conspired to hit stocks.

London’s top tier closed down 35.34 points, or 0.49% at 7,105.34.

It came after the US Federal Reserve meeting, where policymakers signalled that interest rate rises are on the cards.

SSE was in the doldrums amid fears its merger with rival npower has been left “in a shambles” after being delayed due to the incoming cap on default tariff prices.

The pair said they were renegotiating the terms of their tieup as a result of the cap, which is likely to see the deal delayed.

Energy experts at Jefferies said the merger was left in a “shambles”, with worries for the future viability of the deal, which aims to create the UK’s second-biggest gas and electricity supplier.

The two firms had been hoping to seal the merger of their retail operations in the first quarter of next year after it was recently given the green light by the competition watchdog. SSE shares were down 30p at 1,152.5p at the close.

Informa shares were in the ascendancy after the events business booked underlying revenue growth of 3.9% in the first 10 months of the year.

This puts the company on track to meet its underlying revenue growth target of 3.5%. Informa also said it was on track to make savings of at least £50 million in 2019, with more synergies pencilled in.

Investors lapped up the news, sending shares to the top of the FTSE 100, closing up 18.4p at 710.6p.

Sterling, meanwhile, took a dive off the back of more Brexit uncertainty and the resignation of Jo Johnson from Theresa May’s government.

Mr Johnson – brother of Boris – quit as transport minister and minister for London in order to vote against the EU divorce deal whenever it comes before Parliament.

Sterling was down 0.6% versus the US dollar at 1.297. Against the euro it was trading down 0.3% at 1.146.

The FTSE 100 Index lost ground